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The General Services Administration is conducting a criminal investigation of Federal Prison Industries, a government corporation established in 1934 to provide job training and employment for inmates.
FPI's sales of surplus government computers prompted the probe. FPI, which operates under the trade name Unicor, has received millions of dollars' worth of free computer equipment in recent years from government agencies that no longer needed it. But instead of using the computers, Unicor has been selling them to private vendors and the public.
This is a violation of GSA regulations, says Victor Arnold-Bik, sales chief of the GSA's personal property management division. The GSA, which manages the disposal of surplus federal property, has …